To provide for business incubator activities, and for other purposes.

June 24, 2004

Mrs. CLINTON introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

To provide for business incubator activities, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Entrepreneurial Incubators Development Act of 2004'.

SEC. 2. FINDINGS.

Congress finds the following:

(1) While small businesses have been an engine of economic growth over the past decade, they often lack access to the technology available to larger businesses.

(2) Business incubators have proven an effective source of economic growth in the States.

(3) Scientific discoveries need to be quickly converted into job and community ventures.

SEC. 3. GRANTS FOR SUPPORT OF BUSINESS INCUBATOR ACTIVITIES.

(a) PURPOSE- It is the purpose of this section to encourage entrepreneurial creativity and risk taking through the support of the furnishing of business incubator services for newly established small businesses and medium-sized businesses.

(b) GRANT PROGRAM- To achieve the purpose of this section, the Secretary of Commerce (in this section, referred to as the `Secretary') shall carry out a program to provide, through grants, financial assistance for the establishment and support of entities that provide business incubator services in support of the initiation and initial sustainment of business activities by newly established small businesses and medium-sized businesses.

(c) AWARDS OF GRANTS-

(1) ELIGIBILITY REQUIREMENTS- The Secretary shall prescribe the eligibility requirements for the awarding of grants under this section.

(2) COMPETITIVE SELECTION- The Secretary shall use a competitive process for the awarding of grants under this section and, under that process, select recipients of the grants on the basis of merit, with priority given to underserved rural and urban communities.

(3) APPLICATIONS FOR GRANTS- The Secretary shall prescribe the form and content of applications required for grants under this section.

(d) ADDITIONAL ADMINISTRATIVE AUTHORITIES-

(1) COST-SHARING- The Secretary may require the recipient of a grant under this section to defray a specific level of its operating expenses for business incubator services out of funds available from sources other than the Federal Government.

(2) ADDITIONAL TERMS AND CONDITIONS- The Secretary, in awarding a grant, may impose any other terms and conditions for the use of the proceeds of the grant that the Secretary determines appropriate for carrying out the purpose of this section and to protect the interests of the United States, including the requirement that entities providing business incubator services that receive a grant under this section develop a plan for ultimately becoming self-sufficient.

(e) DEFINITIONS-

(1) BUSINESS INCUBATOR SERVICES- In this section, the term `business incubator services' includes professional and technical services necessary for the initiation and initial sustainment of operations of a newly established business, including such services as the following:

(A) LEGAL SERVICES- Legal services, including aid in preparing corporate charters, partnership agreements, and basic contracts.

(B) INTELLECTUAL PROPERTY SERVICES- Services in support of the protection of intellectual property through patents, trademarks, or otherwise.

(C) TECHNOLOGY SERVICES- Services in support of the acquisition and use of advanced technology, including the use of Internet services and web-based services.

(D) PLANNING- Advice on--

(i) strategic planning; and

(ii) marketing, including advertising.

(2) SMALL BUSINESS AND MEDIUM-SIZED BUSINESS-

(A) SECRETARY TO PRESCRIBE- The Secretary shall prescribe the definitions of the terms `small business' and `medium-sized business' for the purpose of this section.

(B) SMALL BUSINESS STANDARDS- In defining the term `small business' for the purpose of this section, the Secretary shall apply the standards applicable for the definition of the term `small-business concern' under section 3 of the Small Business Act (15 U.S.C. 632).

(f) REGULATIONS- The Secretary shall prescribe regulations for the grant program administered under this section.

(g) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated for the Department of Commerce for carrying out this section $50,000,000 for fiscal year 2005, and $200,000,000 for each fiscal year thereafter.

END